Are you interested in getting a hard money loan to fund your next deal in Los Angeles? Delancey Street can help you with any amount of hard money lending you need. Delancey Street is a premier Los Angeles hard money lender, with over $100 million in funding done for clients. We have a pool of private money, ready to help and fund your next project. Our founding partners have years of experience doing hard money lending. Our hard money lenders can not only fund your next real estate project – but can also give you immense years of experience, and business assistance. If you’re unsure if hard money is right for you – then we can help.
Residential refinance in Los Angeles, with a loan amount of $830k, at 75% LTV. We were able to help the investor get a loan at 8.99% with a balloon payment after 18 months.
Delancey Street funded a new residential purchase in California, for $1.2 million with 82% LTV. We helped the developer with a loan at 11% with a balloon payment in 9 months.
On the other hand, we denounce with righteous indignation and dislike men who are so beguiled and demoralized by the charms of pleasure of the moment, so blinded by desire.
A Los Angeles hard money loan is a form of an asset-based loan that allows a borrower to access financing and use his or her property to secure the debt. Hard money loans are not commonly provided by the conventional financial institutions; instead, they are offered by private companies and investors. A hard money loan ensures that a borrower is able to access a loan within the shortest duration without having to have a good credit score. Hard money lenders offer loan services based on the value of the property used as collateral without necessarily considering the borrower’s likelihood to repay their loans. This is because in case there is default in loan repayment, they will sell the property used as collateral to recover their finances and the accrued interest. Institutions that offer hard money loans are more concerned with the value of the property used as collateral and not the borrower’s financial status or credit history.
What are the benefits of a Los Angeles hard money loan?
Hard money loans come with various benefits that allow borrowers to consider them a source of financing when accessing loans from conventional financial institutions becomes inconvenient. Some of the benefits of hard money loans are:
They provide a quick way of accessing emergency loans: Since the lender of such loans focuses on the value of the collateral only, borrowers are able to access the traditional loans quicker than they would elsewhere. Once you have developed a good working relationship with a lender, you will have your hard money loans approved even in hours. This makes hard money loans convenient for individuals seeking emergency loans without having to go through the lengthy processes that characterize borrowing from conventional financial institutions.
Hard money loans are also more flexible compared to ordinary loans: Hard money lenders do not subject borrowers to rigid procedures. This is because providers of hard money loans assess each borrower individually by examining the property he or she is using as collateral. Borrowers also have a chance to negotiate for flexible repayment schedules depending on the value of the item they are using as collateral.
Quick approval of loans: Lenders who offer hard money loans are only concerned with the value of the property used as collateral. They will not need to access a borrower’s credit score, his/her financial stability, or his/her ability to repay the loan. This means that hard money loans’ approval is quick and convenient for the borrower. In some cases, approval can take a few hours unlike loans from financial institutions that might take days.
They do not limit the amount of loan available to borrowers: Many providers of hard money loans will be willing to approve any loan amount as long as they are convinced the asset used as collateral has that value. This ensures that borrowers can get as much money as they need without the limits that exist in the financial institutions.
What are the limitations of a hard money loan?
Although hard money loans are gaining popularity, especially among real estate developers, they do have a few limitations that might make them unattractive. Some of these limitations include:
High-interest rates: Hard money loans attract significantly higher interest rates than those charged by conventional financial institutions. Interest rates on hard money loans are usually in double digits. The high interest rates charged might make the loans an unattractive source of quick financing or some people.
Lenders might take advantage of the terms of the loan: Since lenders are concerned with the value of the property you use as collateral, they are likely to sell it in case you default in repayment. The terms of the loan do not restrain the lender from selling your property if you are unable to make repayments as agreed.
If you need a lender who can provide you with hard money loans in Los Angeles, you can contact our agents. To apply for our reliable and convenient lending services, call us or visit our offices.
Hard money loans are referred to as a, “last resort,” depending on your situation. Experienced real estate investors know that when you want to purchase a property – you have to move fast. When you want to purchase a property within a few days, a hard money loan is the only way to go. Traditional loans take immense time, and it’s impossible to get funding within a period 3-12 days. Most lenders take 1-3 months.
Essentially, hard money loans are bridge loans – which are secured by real estate.
This type of loan is used mostly by real estate investors. Banks tend not to make loans to investors because banks want to make loans where they are confident the loan will be paid back. They are not risk prone. In some cases, homeowners facing bankruptcy, or foreclosure, choose to take a los angeles hard money loan in order to get out of the situation they are in. People unable to get a home loan with a traditional lender can also get this type of loan.
What can I purchase with a los angeles hard money loans?
These loans can be used for property types such as single family home, multi-family residential homes, commercial property, land, and industrial properties. Collateral and personal finances are the two most important components a lender will look for when evaluating a borrower. Lenders don’t care about your credit, or credit report. Their primary concern is your ability to pay the loan back – via your personal finances, and the value of the property (in case they have to foreclose your property).
Lender’s often look at the loan to value (LTV) ratio, when evaluating a deal. Lenders prefer a low LTV, at no more than 70%. Most lenders prefer to lend at this level, because it means that if the lender has to sell the property – he/she has a good chance of getting their original investment back.
Pro’s and Con’s of Hard Money Loans in Los Angeles
Quick Approval: Lenders don’t go through lengthy credit checks on the borrower. They don’t look at that at all. Lenders evaluate borrowers differently than traditional lenders do. In most cases lenders will approve a loan in a few days if the collateral requirements are met.
Flexibility: Hard money loans can be used for virtually any type of hard money loan. Investors, and homeowners, are eligible for this type of loan. Only the most minimal underwriting procedures are used. Depending on the conditions, some lenders may provide 100% financing. It all depends on the deal, and if it makes sense on paper.
New Borrowers: Hard money loans are good for new borrowers who have limited, or poor, credit history. Hard money loans are great for borrowers who will not be approved by traditional lenders.
Disadvantages of Hard Money Loans
Costs: It’s not uncommon for interest rates to be as high as 15-20%. Origination fees can be 1-2% of the interest rate per month. Lender’s focus on making a profit, and getting their money back as soon as possible. These high costs provide a huge incentive for borrowers to pay back the loan as quickly as possible.
Short-term: Hard money loans have terms of 6-18 months. Traditional banks will allow 30 year loans, but hard money lenders don’t. If the loan isn’t paid back within the designated time period, the lender has the option to either increase their interest rate, or take possession of the property.
Loss of Property: Hard money loans in Los Angeles are secured by real estate. If you are unable to pay back the loan, or refinance the loan with a different lender, then the original lender can take over the property and sell it.
Where does money come from, in a los angeles hard money loan?
The funds in a los angeles hard money loan come from private investors looking to lend their money. Lenders charge a higher than expected interest rate. The source of the funds can range from an individual, to a group of investors who fractionally invest in your loan, or to a group of investors who have already pooled their funds and work with a commercial lending asset manager or broker.
When is the best time to use a hard money?
Borrowers should consider using a hard money loan instead of a traditional bank lender when you need quick access to capital. Gaining access to this quick capital comes at a higher
Everything is negotiable, and it’s up to you to shape the deal.
Can I go to a traditional lender instead of a hard money lender?
You definitely can. Banks, however, require strong collateral, a proven history of good credit, and cash flow. In addition, banking institutions will make you go through a rigorous application process, and aren’t quick at decision making. Hard money lenders are the opposite of banks. They are flexible, and focus primarily on the collateral used in the loan. They can fund your hard money loan fast.
If you're in the #cannabis industry and thinking of going public, read this great article on our blog! https://t.co/ptKrJ4TatM
Hi this is a test tweet!#test
Just setting up my Twitter. #myfirstTweet